The Outsourcing Strategies Choice under Correlated Yield and Demand Uncertainty
He Bo
Wang Juan
Abstract：Yield uncertainty has become an important research topic in supply chain management .Compe-ting retailers′outsourcing strategies in the presence of correlated yield and demand uncertainty are investi-gated.Both retailers can choose dual-source procurement strategies or single-source procurement strate-gies.A two-stage game theory model is established and the optimal order quantity , the optimal profit and the threshold of fixed cost found out .It is found that dual-source dominates single-source and both retailers use dual-source strategies if the correlation is relatively high and the fixed cost is low .Otherwise , single-source dominates dual-source and both retailers use single-source strategies.In addition, if the cost is be-tween the two thresholds , there are two symmetric SPNE ( subgame perfect Nash equilibrium ) .
Keywords：supply chainyield uncertaintyoutsourcinggame theory
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：7( 93-99 )